Skip to main content

FM warns defaulters: Clear dues or give control to others

FM warns defaulters: Clear dues or give control to others
Finance Minister Arun Jaitley Thursday issued a stern warning to big loan defaulters responsible for a steep rise in the bad loans or non-performing assets of the public sector banks. He warned them either to clear their dues or allow others to take control of their companies.
However the finance minister admitted that there is no short term solutions to the problem of bad loans.
Jaitley said: “You can’t have a surgical solution to it.”
Rising NPAs or non performing assets of public sector banks have seen sharp rise in recent years.
The RBI has already recommended banks to initiate insolvency proceedings against 12 large defaulters.
As per an official reply given in the Rajya Sabha in the Monsoon session, the total advances to corporate sector in 2017 were around 18 lakh crore rupees and nearly 15% (14.83%) or 3.44 lakh crore rupees were declared as non perorming assets (NPAs).
As per the official reply in the Rajya Sabha, as on March 31, 2017 the gross NPAs of public sector banks in iron and steel sector alone was Rs. 165,661 crore and for power sector it was Rs.30,380 crore which is 56% of the total NPAs of advances given by the public sector banks to corporate sector.
Jaitley also said that consolidation of PSU banks was on cards as the country needs fewer but stronger banks.
Defending the demonetisation a day after the release of RBI data that disclosed that nearly 99% of the total banned notes had come bank in the banking sector, Jaitley said the fallout of demonetisation was on predicted lines and the economy would benefit in medium and long term.
Jaitley said the fact that money got deposited in banks did not mean that all of it is legitimate money.
“It’s nobody’s case that black money has been completely eliminated after demonetisation,” he said.
Jaitley said demonetisation, coupled with GST, will give a “significant boost” to direct tax revenues as many people have come under the tax net.
Although an overwhelming amount of money was deposited in banks it is not a concern for the government as it is good for the economy that more money has come into the formal system.
“The fallout of demonetisation is on predicted lines…the fact that money got deposited in banks doesn’t make it legitimate money,” he said, adding the country was ready for demonetisation even though there was political resistance.
The RBI yesterday said about 99 per cent of Rs 15.44 lakh crore demonetised currency came back into the system.
On the Goods and Services Tax (GST), Jaitley said its inflationary impact has been avoided and there is a scope of convergence of tax rates going forward.
The Economic Times, New Delhi, 01st September 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit